11.39% Yield – ICICI Home Finance FD Scheme 2020 – Should you invest?

ICICI Home Finance FD offers highest interest rates where one can get yield up to 11.39%. Banks are reducing interest rates in recent months. Recently RBI has reduced Repo rate and banks started reducing the interest rates further. Banks are currently offering 5% to 7% interest rates. ICICI Home Finance Fixed Deposit rates are far higher compared to Bank FDs. What are the features of ICICI Home Finance FD Scheme? What are the interest rates of ICICI Home Finance Fixed Deposit Scheme? Is it safe to invest in ICICI Home Finance Fixed Deposits? Should you invest in ICICI Home Finance Fixed Deposit or avoid?

ICICI Home Finance Company Limited is one of the leaders in the Indian mortgage finance and realty space. Part of the ICICI Group, they have been driving innovation and growth in this sector. Their vision, as a growing housing finance company is to make the dream of owning a new home come true, for millions of Indians. Their range of innovative products, from different type of home loans to property related services will help meet these dreams.

Its business is spread into various areas like:

1) Home Loans

2) Loan against Property

3) Fixed Deposits

4) Retail Property Services(Home Search)

5) Corporate Property Services

6) Structured Finance Group

7) Construction Finance.

ICICI Home Finance Fixed Deposit Scheme Details

1) ICICI Home Finance FD’s comes with 12 months to 120 month tenure.

2) This FD scheme, offer cumulative and non cumulative options. In cumulative option, the interest would be paid on maturity. In non cumulative option, interest would be paid monthly, quarterly and yearly based on the option chosen.

3) You can deposit a minimum of Rs 10,000 in this FD scheme.

4) Interest rates are ranging between 6.95% to 7.8% for general category. The yield works out to be up to 11.39% for a 10 year cumulative FD Scheme.

5) Senior Citizens and ICICI Group employees would get 0.25% higher interest rates.

6) These interest rates are effective from 23rd March, 2020.

7) You can open ICICI Home Finance Fixed Deposit Online.

Interest Rates on ICICI Home Finance Fixed Deposits in 2020

Here are the details of interest rates for general category. Senior Citizens and ICICI Group employees would get 0.25% extra rates.

What documents are required to open ICICI Home Finance Fixed Deposit Scheme?

You need to submit Photo + PAN + Address proof documents. Below are the some of the address proof documents that can be submitted.

1) Voter’s Identity Card

2) Birth certificate issued by the competent authority

3) Voter’s Identity Card

4) Passport

5) PAN card

6) Aadhaar Card

7) Any other document acceptable to the Company

You can refer ICICI home finance website for complete list of documents.

Why to invest in this FD scheme?

Here are some positive factors.

1) ICICI Home Finance is part of ICICI Group and is trusted brand.

2) You can invest in this FD scheme with a minimum of Rs 10,000 and get higher interest rates up to 7.9% for regular investors and up to 8.15% for Senior Citizens and get high yield upto 11.39% (10 years Cumulative FD Scheme offers 11.39% Yield)

3) This FD has a good credit rating of FAAA/Stable from Crisil, MAAA/Stable by ICRA and AAA/Stable by CARE, which indicates the highest safety of the investment.

4) You can open this FD online.

Why NOT to invest in this FD scheme?

Here are some negative points.

1) NBFC sector is undergoing a crisis in the last 1.5 year and your investment could high risk.

2) Corporate FDs does not offer any security. In case of company gets windup for some reason, FD investors would get preference like any other creditors and repayment would happen in normal process. There would not be any preference given to FD investors.

3) Premature withdrawal rules make it unattractive.

Some of the FAQs about this FD Scheme

1) How can I calculate the interest amount?

You can visit ICICI HFC Interest Rates Page where you would know the interest rates based on specific tenure which is updated regularly.

2) What is the ICICI Home Finance Fixed Deposit Rating?

If you are thinking “is ICICI Home Finance safe for FD”, you need to check the FD credit rating that can talk about company fundamentals. Crisil have rated these fixed deposits as “FAAA/Stable Rating”, ICRA as “MAAA (Stable) rating” and “AAA/Stable” by CARE, which indicates the highest degree of safety for the payment of interest and repayment of capital.

3) How the Interest received on these FDs is taxed?

ICICI Home Finance would deduct TDS on interest exceeding Rs 5,000 per annum. However, one need to calculate total interest received and pay income tax based on the income tax slab applicable to them in that year.

4) Can I take a premature withdrawal of my FD?

One can take a premature withdrawal only after 3 months from the date of FD or from the renewal of deposit.

If you wish to break the FD between 3 to 6 months after opening FD, you would get 4% p.a. interest.

If you wish to break FD after 6 months of opening FD but before the maturity date, you would get 2% lower interest rate.

If you wish to break FD after 12 months of opening FD but before the maturity date, you would get 1% lower interest rate.

Premature termination of ICICI Home Finance FD is allowed in case of death of the depositor.

5) When the interest payment would be done for non cumulative deposits?

In case of non cumulative deposits, interest would be paid on the last day of the month or quarter or half year or year based on the scheme and option chosen.

6) Can we submit Form-15G or Form-15H?

Yes. Individuals can submit a form 15G or 15H to ICICI Home Finance to not to deduct TDS on their FD interest.

7) In an emergency, can I get a loan against my FD?

Yes, but after 3 months from the date of opening FD which would be at the discretion of the company. One can request for the loan on this FD which would be up to 75% of the FD amount. The interest rate would be 2% higher than the FD interest rate on such loan.

8) Can NRI’s invest in this FD Scheme?

Yes. NRI’s can invest in this Fixed Deposit Scheme. Deposits would be accepted for a maximum period of 3 years. Interest and maturity amount would go to NRO account only.

9) If I am an existing customer of ICICI Home Finance, would I get any extra interest?

No. They would not get any extra FD interest.

10) What are the ICICI Home Finance Fixed Deposit toll free number or customer care details?

You can reach at any of the following details for queries or complaints.

i) You can write to them at customer.care@icicihfc.com

ii) New customers can reach them at 1800 267 4455 existing customers can call them at 1860 120 7777 customer care numbers.

ICICI Home Finance is part of ICICI Group which is a trusted brand. Its FDs have good credit rating from , Crisil, CARE and ICRA. It offers highest interest rates where yield comes up to 11.39%. One should consider the NBFC crisis going in the last 1.5 year. FD’s does not offer any security the way secured NCDs offer to some extent. If you are a high risk investor and willing to consider these risks, you can invest in this FD Scheme and enjoy high interest rates. If you are a low risk investor, stay away from such FD schemes.

If you enjoyed this article, share it with your friends and colleagues through Facebook and Twitter.

I have done my Post Graduation in Finance. I have over 20 years of experience in analyzing various investment options and money saving ideas. I love doing financial planning, Mutual Fund Analysis, Searching long term Stocks for wealth creation, IPO Reviews, Analyzing Life Insurance and Health insurance Plans etc.

14 Comments

Comment navigation

kapil choudhary

i am not understand that how to submit form H on line to icicihfc against fd. in this mahamari period no bodycan go to bank.therefore it is requested not to deduct tds. against my fd. inbetween pl. also suggest how to deposite formH on line in icicihfc.